Ajay Piramal led Piramal Enterprises has acquired a portfolio of anti-spasticity and pain management drugs from US based drug maker Mallinckrodt in an all cash deal. The $171 million (Rs 1160 crore) deal also includes an additional $32 million payable, depending on the financial performance of the acquired assets over the next three years.

Ajay Piramal led Piramal Enterprises has acquired a portfolio of anti-spasticity and pain management drugs from US based drug maker Mallinckrodt in an all cash deal. The $171 million (Rs 1160 crore) deal also includes an additional $32 million payable, depending on the financial performance of the acquired assets over the next three years.

The acquired products include Gablofen (brand baclofen) for treatment of severe spasticity and two pain management drugs under development. Currently, marketed in the US and approved for launch in eight European Countries, these products had generated revenues of $44.6 million, in the one year period ending September 2016.

"This would be our seventh pharma acquisition in the last two years, taking our investment for inorganic growth to Rs. 3,000 crores across our pharmaceutical businesses", said Ajay Piramal, chairman, Piramal Enterprises.

"These acquisitions add branded products that are in attractive niches with barriers to entry and limited competition. Along with our Inhalation Anesthesia products, we are building portfolio to offer our customers and a substantially more diversified revenue base," said Peter DeYoung, CEO of Piramal Critical Care.

After the sale of its formulation business to Abbott in 2010 for a record Rs 18,500 crore, Piramal's pharma businesses are restricted to contract manufacturing, critical care, healthcare information management and consumer products. Piramal Enterprises re-deployed majority of rest of the money got from Abbott into financial services. Ajay Piramal also runs a large real estate business.

The listed Piramal Enterprises had revenues of Rs 3,558 crore in 2015-16, with a compounded annual growth rate (CAGR) of 17 per cent in the last six years.